The adverse court finding emerged as Huang was preparing
to present Liverpool
chairman Martin Broughton with an offer for the club and
proof of funds ahead of a board meeting on Thursday that may decide
the fate of the club.
Huang’s bid has been clouded in uncertainty since it was made
public amid claims that it would be backed by investment from the
China Investment Corporation, the Chinese state’s sovereign wealth
arm.
On Tuesday Huang’s associate on the bid, Marc Ganis, added to
the confusion, telling sportingintelligence.com that they
had not yet decided whether to make an offer for the club and that
no investors, including CIC, had yet been identified.
Huang is one of four potential bidders for Liverpool. Also
understood to be considering offers are Syrian businessman Yahya
Kurdi, who said on Tuesday he would not offer “one pound more” than
the club are worth, New York investment house the Rhone Group, and
the Kuwaiti Al-Kharifi family.
The Liverpool board are scheduled to meet to discuss any offers
they receive on Wednesday having asked for proof of funds and
detailed offers by then.
None of the potential bidders has yet provided proof of funds,
though they are all understood to have been subject to background
checks by parties involved in the sales process.
The adverse judgment against Huang was handed down in January
1999 by a circuit judge in Seminole County, Florida, and relates to
a dispute with a former business associate, Yudong Zhang, and a
company, T&K Guang Xin Enterprises.
According to the judgment, a copy of which has been seen by
Telegraph Sport, Huang, then a resident of Las Vegas, was
ordered to pay damages of $750,000 (£473,000) and interest of
$788,300 (£497,000).
On Tuesday night a spokesman for Huang confirmed that the court
had found against him in the case but declined to discuss what the
source of the dispute was or the nature of the business
venture.
Neither could he confirm whether Huang was appealing against the
judgment, but he said Huang disputed that the money was owed to his
former associates.
Huang has also recently won a legal dispute arising from his
involvement in an attempt by a Chinese-owned car company to
establish itself in the United States.
Huang was faced with suits for tortious interference with a
business relationship, fraud, defamation and a breach of fiduciary
duty brought by AutoChina Ltd, but won them all and was awarded
$300,000 (£189,000) in damages earlier this year.
According to transcripts of the hearings, held in Miami in
March, one of those behind the allegations was David Herzig, who is
listed as a co-director in one of Huang’s firms, Aspen
Infrastructure.
US Court records list Huang as being involved in several other
court proceedings in the last six years. Huang’s spokesman said on
Tuesday evening that he had not been found against in any of them,
and that there were no outstanding legal proceedings against
him.
“Mr Huang’s focus is now on preparing QSL’s bid [for Liverpool]
and he has briefed all of his advisers that he will be making no
further comment at this point in time,” the spokesman said.
Earlier Ganis indicated that a bid was not certain. In an
exchange with sportingintelligence.com, he said: “Among
the most important points I have tried to get out is that no
proposal [in relation to a Liverpool bid] has been made and no
decision to offer a proposal has been made.
“There were many reports about CIC, yet at no time to [any]
party, whether [to] the media, Sir Martin [Broughton] or Barcap,
have we ever identified that CIC was an investor.”
Meanwhile Kirdi, whose apparently modest business background in
Canada and apparent willingness to pay a premium for the club has
raised doubts about his credentials, told Bloomberg that he would
not over-pay for the club. “I can’t pay one pound more than value
of Liverpool, I’m not crazy,” he said. Kirdi said he was backed by
“big names” from the Middle East and Canada but declined to name
them.
Five high-profile takeover attempts that ended up on the
rocks
Michael Knighton, Manchester United, 1989
Few takeovers have been quite so high-profile. Knighton, after
agreeing to buy United for £20 million, donned training kit and
juggled a ball in front of the Stretford End before the 1990/91
season opener with Arsenal. Adverse publicity, though, persuaded
his backers to pull out and the deal collapse.
Roman Abramovich, Tottenham, 2003
How different the Premier League might have looked had the Russian
oil magnate acquired his first target. Instead, Daniel Levy brushed
off super-agent Pini Zahavi’s inquiries as to how much Spurs may
cost and Abramovich looked down the King’s Road.
Thaksin Shinawatra, Liverpool, 2004
The then-Thai Prime Minister saw a deal to buy a stake in Liverpool
collapse six years ago amid a blaze of bad publicity, with fans
waving placards urging then-owner David Moores to “say no to Thai
blood money”. Shinawatra, mastermind behind an anti-drugs war which
killed 2,600, had planned to use a public lottery to finance his
offer.
DIC, Liverpool, 2007
The investment arm of Dubai’s ruling family seemed to have a deal
to buy Liverpool sealed when Moores and Rick Parry, his chief
executive, changed their minds and announced Tom Hicks and George
Gillett as their preferred bidders. Dubai may have since imploded,
but it still looks a poor choice.
Barry Moat, Newcastle, 2009
With unpopular owner Mike Ashley resigned to leaving, local
businessman — and St James’s Park executive box holder — Barry Moat
seemed to be ready to rescue Newcastle from their purgatory, even
completing due diligence on the club’s books. A price and payment
structure, though, could not be agreed, and Ashley pulled the club
off the market.
